New Energy Policy of Paraguay: Updates on Infrastructure and Regulatory Framework

By Martín Carlevaro, Larissa Recalde y Juan Manuel Ros, BKM-BERKEMEYER

With Decree No. 2553/24, the Government approved Paraguay's new Energy Policy. The strategic vision of the issued policy refers to the consolidation of an energy matrix according to the country's needs, promoting the sustainable use of natural resources and energy within a framework of regional integration as an essential element for the comprehensive development of the entire population and productive and social sectors.

To achieve this vision, strategic objectives have been established for the national energy sector as a whole, as well as for each of the following subsectors: electricity, binational hydroelectric entities, bioenergy, renewable alternative sources, and hydrocarbons. These objectives include specific goals and actions, encompassing infrastructure projects and regulatory reforms. 

Regulatory Updates within the Energy Plan

New legal framework for hydrocarbons that will include unconventional hydrocarbons. 2025.

Regulations for defining reference tariffs for non-conventional renewable energies (non-hydraulic). 2025.

Regulatory decree to incentivize the use of non-conventional renewable energy in civil construction and infrastructure works. 2025.

Regulatory decree for independent energy transport. 2026.

Decree for the fleet renewal plan for the public sector with flexible vehicles. 2026.

New legal framework for biomass. 2026.

Regulations issued by the Ministry of Economy and Finance that establish incentives to mitigate air pollution, in accordance with the mandates of Articles 17 and 20 of Decree 1269/19, which regulates Law 5211/14 on air quality. 2028.

Infrastructure Updates in the Energy Plan

Terms of reference for building a photovoltaic solar plant. 2024.

Terms of reference for constructing a small hydroelectric plant. 2024.

Projects with private participation that utilize alternative renewable sources (2025 onwards) (up to 200 MW). 2025.

Solar collector project for water heating in the public sector (gradual implementation in public hospitals). 2026.

At least three collaborative projects with companies, universities, or other countries for expanding efficient road infrastructure in the central department. 2025.

At least three viaducts in the central department under construction. 2025.

Comprehensive improvements to at least ten avenues and/or ring roads in key metropolitan areas of the country under construction. 2026.

Comprehensive improvements to at least twenty avenues and/or ring roads in key metropolitan areas of the country under construction. 2026.

At least ten collaborative projects with companies, universities, or other countries for expanding efficient road infrastructure nationwide. 2027.

At least ten viaducts in the central department and fifteen viaducts nationwide under construction. 2027.

New vehicle fleet for the public sector with sustainable vehicles (electric vehicles) incorporated (2028 onwards, gradual incorporation by percentage until 2050). 2028.

Carbon credit marketing plan. 2028.

Small hydroelectric plants totaling at least 50 MW in operation. 2030.

Electrification projects for areas without electricity access through innovative solutions (grid extension, mini-grids, or individual generation). 2032.

The National Energy Plan includes a total of 95 objectives and 385 goals to be executed from 2024 to 2050. The regulatory and infrastructure updates mentioned will mark a significant milestone in the development of our country and the region. The plan does not specify the modalities for executing the mentioned projects, and some will be addressed in the regulatory frameworks to be promulgated in the coming years. Therefore, it remains to await the pronouncements from the state agencies involved in implementing the Energy Plan. Berkemeyer Legal Study has extensive experience in providing specialized advice on infrastructure projects tendered under any public contracting modality.